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We have had another successful quarter at Stenprop with our UK multi-let industrial (MLI) portfolio continuing to perform strongly, confirming the favourable supply and demand fundamentals of the sector.

We published our portfolio update today and are pleased to report that for the period 1 October 2019 to 31 December 2019, we completed 33 new lettings and 21 lease renewals. In these three months, the average rental uplift was 14% for new lettings and 12% on lease renewals. Our Asset Management team have been working hard and we are confident that results like this will continue for the foreseeable future.

The average rent on the MLI portfolio as at 31 December 2019 was £5.19/sq ft. This is 7.6% below the average estimated rental value of the portfolio of £5.61/sq ft. Across the whole portfolio, our vacancy rate stood at just 7.5%.

With the recent contract exchange for the sale of our Bleichenhof property in Hamburg, we are on track to achieve our two-year interim transaction to at least 60% MLI. We are certain that our intention to become a 100% MLI business over the following 12 to 18 months is still very much obtainable. When this transaction completes, the MLI component of our property portfolio will be approximately 56% and we will have the net sale proceeds available for more MLI acquisitions.